EMCOR Group, Inc. Morgan Stanley's 14th Annual Laguna Conference

Sure. When you think of EMCOR, we actually do the work. So we are a specialty trade contractor. We primarily put in mechanical and electrical systems, and then we fix them and help maintain them. We do that across a variety of sectors. We are pretty well diversified, from healthcare, the institutional sector, commercial, water and wastewater, transportation, and of course, why 90% of the room is here today. We also are probably, you never know because there is private companies doing this, we are probably the largest specialty trade contractor, mechanically and electrically, serving the data center market. And we do that in just about every major data center market there is. And we can get into specifics in the Q&A. So when you think of us, we are a company of plumbers, pipe fitters, electricians, welders, HVAC technicians, sprinkler fitters, and the people to fix that.

When you go to our electrical business, we are primarily a medium voltage, or we would say inside the fence, inside the building electrician. That does not mean we do not connect to the substation and bring the wire in, but we are typically working inside the space. We also have a pretty significant low voltage business. So that would be structured cabling and all the low voltage that supports an operation like this. On the mechanical side, we do heavy piping. Anything from a small pipe, which would be a plumber's job. Plumbing does not mean just bathrooms. Plumbing means medical gas, all those things, high purity piping, to very large diameter pipe, could be up to 64 inches. We also have a sheet metal business. Plumbing and pipe moves water and fluid, sheet metal moves air. The enclosures that move air.

On the aftermarket side, we have a fairly significant mechanical service business, which is two-thirds or more of our building services segment, and the balance being, for lack of a better word, operating engineers. People that are either going to be a Roth technician servicing a branch network or in the building. Then we have an oil and gas business as EMCOR Industrial Services, which it does more than just oil and gas, but it primarily was a downstream refining business with a little bit of upstream, with a very flexible workforce. We serve LNG and other things. Really good welders, really know how to work in mission-critical facilities. Put all that together, you get to EMCOR, which when I think about it and how we've built a company, I guess the popular world and investment community, we would be your classic serial compounder.

We invest for the long term. The other thing I think that is a little different than us, we have a very strong culture. We are a company led by a set of values. We train our leaders. Our core product, we do mechanical and electrical construction, and we do it very well, and service, but our core product is actually great field leadership. That is what distinguishes us versus other companies. Jason, you have anything to add to that?

I think that was a great opening summary, Tony.

I figure I get, what do they do, about nine hours of meetings? What do you think about six hours and 20 seconds with data centers today?

Yeah. The multi-building campus is almost three to five years now. That also happens, and you can have cloud data centers in that multi-building campus, and they may put an AI data center. Let's be honest, as contractors, do we really know? We just know we're putting in something bigger.

Sure. We know how to put the equipment in.

We are not IT experts. We know how to install stuff and fix it. The predominance of our business still is cloud infrastructure. That in itself was a great business. We're growing 9% a year. Those things are somewhere between 20 and 50, 75 megawatts. It's probably where we've gotten really good at doing fixed price work. But there definitely is a shift to more AI, and put a number on that. Is it growing 30% a year, Jason? Is it growing 40% in the market? Does anybody really know? We are definitely participating in the expansion of the size of those data centers. Also, our ongoing cloud business is a great business for us.

We serve lots of markets. We used to come in and say, "Well, we're serving seven markets now mechanically and 16 electrically." I don't know how to do that anymore because there used to be one campus or two campuses in a state, and now that might be five or six campuses in a state. That's irrelevant now. I'd venture to say we're probably servicing in some way Fire protection, we're servicing everywhere in the country. Electrically, we're probably servicing 50% of the markets that matter, 60%. Mechanically, somewhere around 40%, 50%, a little less. The scope has definitely gone up.